Rockcliffe Realty Corp. v. Bowles

151 F.2d 339, 1945 U.S. App. LEXIS 2942
CourtEmergency Court of Appeals
DecidedOctober 22, 1945
DocketNo. 222
StatusPublished
Cited by4 cases

This text of 151 F.2d 339 (Rockcliffe Realty Corp. v. Bowles) is published on Counsel Stack Legal Research, covering Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rockcliffe Realty Corp. v. Bowles, 151 F.2d 339, 1945 U.S. App. LEXIS 2942 (eca 1945).

Opinion

MARIS, Chief Judge.

The housing accommodation here involved is apartment 6M in the Rockcliffe Apartments, an apartment house situate in Montclair in the Northeastern New Jersey Defense-Rental Area. The maximum rent date for that area as provided by the Rent Regulation for Housing1 is March 1, 1942. On that date the rent for apartment 6M was $155 per month. The complainant, which owns and operates the Rockcliffe Apartments, sought to have this rent adjusted upward to $215 per month. To the Area Rent Director and the Regional Administrator the complainant argued that the rent for apartment 6M on the maximum rent date was substantially lower than at other times of the year because of seasonal demand or seasonal variations in rent for its apartments and consequently that it was entitled to an upward revision pursuant to the provisions of Section 5(a) (7) of the Regulation. In the protest filed with the Price Administrator the complainant urged as an additional and independent ground for upward adjustment that the rent for apartment 6M on the maximum rent date was materially affected by peculiar circumstances and consequently that Section 5(a) (ll)2 of the Regulation was applicable. The Administrator found the complainant’s proof inadequate to sustain either ground relied upon for adjustment and denied the protest. This complaint followed.

We turn first to the question whether the Administrator erred in determining that the complainant had failed to make out a case for adjustment of the rent of apartment 6M on the ground that the allegedly low rent was caused by “off-season” renting within the meaning of Section 5(a) (7) of the Regulation. That section provides, inter alia, that

“Any landlord may file a petition for adjustment to increase the maximum rent otherwise allowable, only on the grounds that:

******

“(7) the rent on the date determining the maximum rent was substantially lower than at other times of year by reason of seasonal demand, or seasonal variations in the rent, for such housing accommodations * * * >>

The Administrator has upon numerous occasions announced the standards which must be met by a landlord located in an area having a customary moving date in order to entitle him to an upward adjustment in rent under the provisions of Section 5(a) (7) of the Regulation.3 In conformity with these standards a landlord seeking an upward adjustment under Section 5(a) (7) must establish that the term of the lease in effect on the maximum rent date commenced after the customary moving date, in this case October 1st; that the rent on the maximum rent date was both substantially lower than the rent would have been for the subject accommodations had they been rented on the usual annual renting date and also lower than the rent for comparable accommodations in the area on the maximum rent date; that the building in which the subject accommodations are located had, on the maximum rent date, a pattern for October 1st occupancy; and that the subject accommodations had such a pattern.

The complainant does not attack these standards as unreasonable but asserts that insofar as possible it has met them by adequate proof. The facts upon which the complainant relies are that the Rockcliffe Apartments were completed in November, 1940, with 102 apartments available for occupancy. Between November, 1940 and October 1, 1941 the complainant had rented but 53 of these apartments. Apartment 6M was one of 49 apartments still vacant on October 1, 1941. On October 8, 1941 the complainant executed a lease for apartment 6M for a two year term commencing November 1, 1941 and expiring September 30, 1943. The lease was renewed to September 30, 1944.

As we have seen, the Administrator has laid down five standards which the complainant must meet in order to entitle it [341]*341to an upward adjustment. However, the issue in this proceeding is narrowed by several concessions which the Administrator has made. He states that for the purposes of this proceeding the building and the subject unit may be assumed to have an October 1st occupancy pattern and that it may also be assumed arguendo that the rent for apartment 6M is lower than the rent for comparable accommodations in the area on the maximum rent date. It is an undisputed fact that the' lease for apartment 6M commenced after October 1st. This leaves as the sole subject of our inquiry the question whether the Administrator erred in finding that the complainant did not present satisfactory proof that the maximum rent for apartment 6M as established by the lease executed on October 8th is substantially lower than it would have been had the apartment been rented for a term commencing October 1st.

The complainant is necessarily without direct evidence as to the experience of “in-season” rental of apartment 6M since the “off-season” lease with which we are dealing was the first and only lease for that apartment. However, such evidence as there is available for argument by analogy is most unfavorable to the complainant’s position. All the apartments in the building which are on the same vertical line as apartment 6M are designated by the letter “M” together with their floor number. Apartments 7M, 2M, 5M and 4M were leased for terms commencing November 1, 1940, December 1, 1940, January 20, 1941 and March 15, 1941, respectively, and apartment 3M was leased for a term commencing March 1, 1942. Although all were “off-season” leases, the four first named being executed prior to October 1, 1941 and the one last named subsequent to October 1st, each was leased at a rental satisfactory to the complainant. It would appear from this that the effect of “off-season” leasing was not necessarily a drop in rentals as compared to those procurable for “in-season” leasing.

It is a fact that apartment 6M was available for occupancy in ample time to permit an “in-season” lease for a term commencing October 1, 1941 but that it nevertheless remained without a tenant. Although it appears to be a reasonable assumption to make we need not determine whether the desire of the complainant to procure maximum occupancy was responsible for the allegedly low rentals. Suffice it to say that the complainant has not met the burden of proof which the law casts upon a petitioner for an adjustment.4 We conclude that the Administrator was not arbitrary or capricious in denying the complainant’s petition for an upward adjustment of rentals insofar as Section 5(a) (7) is concerned.

Our next inquiry is whether the Administrator’s determination that the complainant was not entitled to an upward adjustment of rent pursuant to Section 5(a) (11) of the Regulation was improper. That section provides for an adjustment upon the ground that:

“The rent on the date determining the maximum rent was materially affected by peculiar circumstances and as a result was substantially lower than the rent generally prevailing in the defense-rental area for comparable housing accommodations on the maximum rent date.”

The complainant urges that the rent for apartment 6M was fixed under “peculiar circumstances” within the meaning of Section 5(a) (11). The circumstances relied upon are that the Rockcliffe Apartments was a new apartment building with luxury type apartments, representing a substantial investment, and entailing heavy operating expenses. It was completed in November 1940, after the October 1, 1940 renting season had passed. When the next renting season, October 1, 1941, passed there were still 49 vacancies.

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Cite This Page — Counsel Stack

Bluebook (online)
151 F.2d 339, 1945 U.S. App. LEXIS 2942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rockcliffe-realty-corp-v-bowles-eca-1945.